Why asset managers choose Luxembourg for active ETFs

In this video, leading asset managers share why Luxembourg is their preferred jurisdiction for launching active ETFs: State Street outlines its “Lux-first” strategy, explaining that the largest book of active mutual fund business in Europe is already in Luxembourg, making it the natural launchpad for active ETF share classes. BNP Paribas Asset Management highlights the benefits of synthetic replication, citing its effectiveness in transferring replication risk, providing access to complex and emerging markets, and boosting performance through cost efficiencies. Janus Henderson explains why it chose Luxembourg to launch its CLO ETF: a combination of regulatory clarity, mature fund infrastructure, and the ability to migrate services quickly from Ireland. JPMorgan points to growing ETF adoption in Latin America and Asia, emphasizing that Luxembourg’s globally trusted UCITS label resonates particularly well with institutional investors in these regions. Together, these insights underscore Luxembourg’s strategic role as a global hub for active ETF innovation and cross-border fund distribution.